Aruba, a beautiful Caribbean island. It is attracting more and more people who dream of having their own holiday home in the tropics. But before you position yourself on a beach bed and immerse yourself in the azure waters, there is work to be done. Namely, it is wise to be aware of the various taxes involved in buying a holiday home in Aruba.

1. Property transfer tax

One of the first taxes you will have to deal with is the transfer tax. This tax is calculated on the purchase price of the property and must be paid by both the buyer and the seller. The standard rate of transfer tax in Aruba is currently 6%, but it is important to note that regulations can change. It is therefore advisable to consult the latest information.

2. Property tax: annual charges

Besides the transfer tax, there are annual charges, including the real estate tax. This tax is based on the value of real estate and is levied by the government of Aruba.

Rates vary depending on the assessed value of your holiday home. It is good to know that the tax can be updated annually. So consult the latest figures regularly.

3. Income tax

If you are considering renting out your holiday home in Aruba, you should also consider income tax. Aruba taxes income generated from renting out property. Make sure you are aware of the current tax rates and regulations regarding rental income. It may be smart to hire a local tax advisor to ensure that you take advantage of all tax benefits and avoid potential pitfalls.

4. Tourist tax

When you rent out your holiday home in Aruba to tourists, you are also subject to tourist tax. This tax is levied on the rental price you charge your guests. Keep in mind that the rate may vary depending on the length of stay and the type of accommodation you offer.

5. Property tax

Another tax you may face when owning a holiday home in Aruba is the property tax. This tax is levied on the value of the property and can vary based on several factors. Including the destination of the property and its use.